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10/1/2014 10:35AM

Does the Bull Market Have More Life?

A resurgent dollar is remaking the investment landscape as Fed stimulus ends, in a shift many fund managers expect will propel U.S. stocks, and even bonds, to fresh gains. Tom Lauricella joins MoneyBeat. Photo: Getty.

This transcript has been automatically generated and may not be 100% accurate.

... some are arguing that the cable is being set once again ... for gains in the U S stocks Tom Lauricella he wrote the Journal's fourth-quarter stocks outlook an e joins us now ... Tom Lauricella I look at ... the Federal Reserve that is going to wind down the big bond buying program this month ... I look in a dollar that is suddenly turned correction is rising against every other currency ... on commodities getting hit tremendously ... small cap stocks taking a wax why should I believe that now's the time to invest in stocks come or sell ... well understating your ... for his or her order forty nine with the occasionally and alms the point of your your outlook keeps putting those are also very good points to look out here aam but in what will folks are saying is look here's economy ... is doing fine ... Mary is not great ... but we're on a pretty steady in a moderate growth path ... the guy ... that is a structural issues in particular ... no real deflation problem ... aam actually this commodity declines especially lor oil prices are actually very good for the share economy particularly ... use consumer who needs all the help of thinking get ... um ... and you know the Fed has made it pretty clear that they feel they need to have short term interest rates moving somewhat slowly higher next year ... at the same time you've got ... much weaker situation in Europe to buy and still a mess ... so ... those central banks are easing that sets the stage for stronger dollar ... um which um really um um can can make U S assets more attractive to non U S investors to get the ... the added return on the dollar as the rabbits to say you pretty good environment for stocks that look it's not great but valuations are crazy expensive by any stretch ... of track ... and you know ... and you know was a moderately growing economy decent ... profit growth ... and aam some added money coming in from overseas ... it or not we're not seeing the huge rally in stocks but it's it's a good environment for for for the equities market ... you know me well from OSI in the know we're going with all this ... if the economy was growing ok but not great while the Fed was basically had the spigots open for for twenty four seven ... I think I knew was good but not great ... why should lead the economy is going to turn down at the Fed is taking those things away yet look is too big to be the market's rate some people say the signs are there other say they are both will do ... Dylan Tom Lauricella ... all the things that turn and I'm still supposed to believe that is a good time to buy stop loving the fact is is that I think most people including yourself and say that the Fed's quantitative easing by the Fed hasn't had much for real economy impact threat to the fact that ending ... isn't really going to have an impact but it ... had a major capital markets and did did but also corporate profits have doubled along with the stock market or a valuations by historical standards on large cap stocks free widgets at ... too ... great so ... you know a little bit ... of a better look at it again not super nothing nothing that most money managers are we talk to her concerns now ... so I'm you know again we're we're not talking about gangbuster returns the stock to look where up the percent Essen P this year give or take them that's great ... in environment with is Viollis consider that that is you know ... and you know that the stronger dollar it does help ... um you know a certain number of companies ... and the US is is is not the kind of sad look on me like you like some these countries in Europe that depend so heavily in exports ... a stronger dollar cripples us ... so that you know the capital flows incurred by investors saying ... hey you know what ... this is a good place invest specially compared to everybody else in the world ... you know it it it has a little bit of a tailwind you know the one taken that they're a lot of Proms after I'd I'd estimate it makes our job so into so ... much fun I tell us all thank you very much ...